The Task Force on the National Infrastructure Pipeline (NIP) on Wednesday submitted its final report to Finance Minister Nirmala Sitharaman.
The report, which comes in three volumes, contains recommendations on general and sector reforms relating to key infrastructure sectors for implementation by Centre and states in India. The task force has projected total infrastructure investment of above Rs 111 lakh crore during the period FY 2019-25 to make India a $5 trillion economy.
“The NIP shall be helpful in providing quality and adequate infrastructure as well as economic growth,” the Finance Ministry said in a tweet.
The Task Force, in its detailed report, has given recommendations on changes required to several key sectoral policies and other reform initiatives needed by Central and state governments.
The final report identifies and highlights recent infrastructure trends in India as well as global in all sectors of infrastructure. It also captures sector progress, deficits and challenges.
In addition to update existing sectoral policies, the Final Report also identifies and highlights a set of reforms to scale up and propel infrastructure investments in various sectors throughout the country.
The report also has suggested ways and means of financing the NIP through deepening corporate bond markets, including those of municipal bonds, setting up Development Financial Institutions for infrastructure sector, accelerating Monetisation of Infrastructure Assets, Land monetisation, etc.
The Task Force has recommended that three Committees be set up including one to monitor NIP progress and eliminate delays, the second – a Steering Committee in each Infrastructure ministry level for following up implementation; and third a Steering Committee in DEA for raising financial resources for the NIP.
In the past decade (FY 2008-17), India invested about $1.1 trillion on infra structure. The challenge now is to step-up annual infrastructure investment so that lack of infrastructure does not become a binding constraint on the growth of the Indian economy.
The Finance Ministry had set up a task force headed by Economic Affairs Secretary to draw up the NIP for each of the years from FY 2019-20 to FY 2024-25. The task force also includes CEO (NITI Aayog), Secretary (Expenditure), Secretary of the Administrative Ministries, and Additional Secretary (Investments), DEA as members and Joint Secretary (IPF), DEA as Member Secretary.
This exercise, the first of its kind, is expected to be followed up by a periodical review process. NIP will enable a forward outlook on infrastructure projects which will create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive. NIP includes economic and social infrastructure projects.
During the fiscals 2020 to 2025, sectors such as Energy (24 per cent), Roads (18 per cent), Urban (17 per cent), and Railways (12 per cent) account for 71 per cent of the projected capital expenditure in infrastructure in India.
Out of the total expected capital expenditure expenditure of Rs 111 lakh crore, projects worth Rs 44 lakh crore (40 per cent) are under implementation, projects worth Rs 33 lakh crore (30 per cent) are in conceptualization stage and rest are under development.
The Centre (39 per cent) and states (40 per cent) are expected to have almost equal share in implementing the NIP in India, followed by the private sector (21 per cent).